Binance and Other Crypto Exchanges Hit by AWS Outage

Binance Disruption Sparks Concerns Over AWS Dependence in Crypto

On April 15, Amazon Web Services (AWS) had a major technical malfunction and disrupted various large crypto exchanges such as Binance, KuCoin, and MEXC. The issue originated from AWS's Tokyo data center, which suffered from a connectivity problem that impacted numerous services on various platforms.

Binance, KuCoin, MEXC Face Service Interruptions

Binance reported this problem first out of all. The exchange paused withdrawals briefly to protect users’ assets. In a post on X (formerly Twitter), Binance said it suspended withdrawals "to keep safe" and resumed them about 23 minutes later. A Binance spokesperson confirmed that the outage was tied to a problem at the Amazon's data center in Tokyo.

Source: Binance

KuCoin also faced service issues and warned users about temporary disruptions. According to a statement, their technical team was working hard to fix the issue. They added that no user data or funds were lost, and some services had already been restored. MEXC users saw strange chart movements, failed order cancellations, and delays in transferring assets for spot trading. The exchange assured users that their assets were safe and even offered to prepare a compensation plan for anyone affected by the outage.

AWS Confirms the Problem

Amazon’s AWS said a network issue started at 1:15 a.m. PDT and was fixed by 1:51 a.m. PDT. The problem affected its Tokyo data center and hit at least 12 services. They added that they were keeping an eye on the situation and would keep users updated.

More Crypto Platforms Affected

Other than Binance, KuCoin, and MEXC, many other exchanges and wallet providers also experienced issues. Some of these include Coinstore, Gate.io, DeBank, Rabby Wallet, and Weex. All such entities use AWS's strong cloud infrastructure to quickly process enormous transactions. When the system went down, so did their services.

Many of the top crypto exchanges in the world, including Coinbase, Crypto.com, Huobi, BitMEX, and Kraken, also depend on AWS to operate smoothly. This incident shows how much the crypto industry relies on a single cloud provider.

Calls for Decentralized Alternatives Grow

The AWS outage has sparked fresh discussions about the risks of depending too much on centralized infrastructure. Some experts are now saying the digital currency world needs better, more decentralized solutions. Edmund Chua, head of the mETH Protocol, also commented that “AWS down and 90% of crypto is down,” calling decentralization a “meme” in today’s ecosystem. Decentralized alternatives such as Filecoin (storage), Akash Network (compute), and Render Network (GPU computing) are in consideration to serve as more reliable and secure options to eliminate such single points of failure.

Final Thoughts

The AWS outage itself lasted only a few minutes, but its repercussions seeped all the way into the digital currency world. It is a reminder that even the most sophisticated platforms of KuCoin and Binance are susceptible to issues in their backend infrastructures. As the crypto world expands, having superior and more decentralized infrastructure could be the next giant leap.